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Assume That a Country Currently Has a Trade Surplus

Question 82

Multiple Choice

Assume that a country currently has a trade surplus.If that country experiences an expansion in economic activity,what would we expect to happen to the trade surplus?


A) Nothing,because expansions do not impact the trade surplus.
B) Imports tend to be higher during this time,which decreases the trade surplus.
C) Exports tend to be lower during this time,which increases the trade surplus.
D) Exports tend to be higher during this time,which decreases the trade surplus.
E) Imports tend to be lower during this time,which increases the trade surplus.

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